Chisese george 222

JOMO KENYATTA UNIVERSITY OF AGRICULTURE AND TECHNOLOGY SCHOOL OF HUMAN RESOURCE DEVELOPMENT DEPARTMENT OF ENTREPRENEURSHIP AND PROCUREMENT MASTER OF SCIENCE IN HUMAN RESOURCE MANAGEMENT

THE ROLE OF RECRUITMENT AND SELECTION PRACTICES ON EMPLOYEE PERFORMANCE

MHR 3205: HUMAN RESOURCE MANAGEMENT SEMINAR 2ND YEAR 1ST SEMESTER

GEORGE CHISESE MUKHWESO HD312- 1652/2013

SUPERVISOR DR. JOYCE NZULWA

MARCH, 2014

TABLE OF CONTENT TABLE OF CONTENT ............................................................................................................................ i 1.1Introduction......................................................................................................................................... 1 LITERATURE REVIEW ........................................................................................................................ 6 2.1 Introduction........................................................................................................................................ 6 2.1.1 Recruitment and Selection sources ................................................................................................. 6 2.1.2 Recruitment and Selection policies and procedures ....................................................................... 8 2.1.3 Use of technology in Recruitment and Selection .......................................................................... 11 Use of technology in Recruitment ......................................................................................................... 11 Use of technology in Selection .............................................................................................................. 12 2.1.4 Employer branding ....................................................................................................................... 13 REFERENCES ...................................................................................................................................... 14

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1.1 Introduction

Many organizations in Kenya and around the world have been in many ways affected by recruitment and selection practices of employees in achieving their set objectives. There has been need for organizations to understand the role of recruitment and selection practices in on getting the most suitable candidates with the best qualifications and abilities to obtain high performance. The reason of this conceptual paper is to review some of the contributions made by different authors on the role of recruitment and selection practices on employee performance. This paper aims at reviewing how recruitment and selection sources affect employee performance. Also to identify how recruitment and selection policies and procedures influence employee performance. Another aim of this conceptual paper is to determine if use of technology in recruitment and selection practices influence employee performance. The last area to be reviewed in this paper is to identify if Employer branding in recruitment and selection practices influence employee performance or is it whether recruitment and selection play a role in employer branding

Recruitment and selection also has an important role to play in ensuring worker performance and positive organisational outcomes. It is often claimed that selection of workers occurs not just to replace departing employees or add to a workforce but rather aims to put in place workers who can perform at a high level and demonstrate commitment (Ballantyne, 2009).

As Mullins (2010) notes: „If the HRM function is to remain effective, there must be consistently good levels of teamwork, plus ongoing co-operation and consultation between line managers and the HR manager.â€&#x; This is most definitely the case in recruitment and selection as specialist HR managers (or even external consultants) can be an important repository of up-to-date knowledge and skills, for example on the important legal dimensions of this area.

Recruitment and selection is often presented as a planned rational activity, comprising certain sequentially-linked phases within a process of employee resourcing, which itself may be 1

located within a wider HR management strategy. Bratton and Gold (2007,) differentiate the two terms while establishing a clear link between them in the following way: „Recruitment is the process of generating a pool of capable people to apply for employment to an organisation. Selection is the process by which managers and others use specific instruments to choose from a pool of applicants a person or persons more likely to succeed in the job(s), given management goals and legal requirements.‟

According to Decenzo (1996) problems occur when we make errors by rejecting candidates who would latter perform successfully on the job or accepting those individuals who subsequently perform poorly on the job.

Generally, Kenyan employers recruit against subjective sets of criteria which vary with organization. Inevitably, the lack of a systematic technique for employee selection results in inappropriate choices for respective jobs hence the misdirection of skill and talent. This failure translates to a loss to both the employer on one end in the form of mediocre worker productivity as well as the employees whose aptitudes are underutilized hence wasted talent capacity (Njenga, 2008) However here are is one of the model discussed by CIPD 2010 that talks about how firms can adopt systematic criteria of recruitment and selection practices. According to CIPD (2010), much prescriptive writing on recruitment and selection advocates viewing the process as sequential with distinct and inter-linked stages. This model is referred to as the resourcing cycle. The resourcing cycle begins with the identification of a vacancy and ends when the successful candidate is performing the job to an acceptable standard: ie post-selection. It is a two-way process. Organisations are evaluating candidates for a vacancy, but candidates also observe the organisation as a prospective employer. Conducting the process in a professional and timely manner is necessary for normal effectiveness in helping to ensure that not only is the „best‟ candidate attracted to apply and subsequently accepts the post, but also that unsuccessful candidates can respect the decision made and possibly apply for future vacancies, along with other suitable candidates.

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The first step in the recruitment process is to decide that there is a vacancy to be filled.

Increasingly a more strategic and questioning approach may be taken. If, for example, the vacancy arises because an employee has left, managers may take the opportunity to review the work itself and consider whether it could be undertaken in an alternative way. For example, could the work be done on a part-time, job-share or flexi-time basis? Alternatively, could the job be automated? The financial services sector in the UK provides one example of where technological developments have resulted in both significant job losses and changed patterns of work since 1990.

On the assumption that a post does need to be filled it will be necessary to devise specifications. Whether a competency-based approach or the more traditional method of formal job descriptions and person specifications is chosen, a CIPD report (2007) notes that specifications need to reflect the duties and requirements of the job along with the skills, aptitudes, knowledge, experience, qualifications and personal qualities that are necessary to perform the job effectively. Consideration should also be given to how the recruiter intends to measure and elicit information regarding those skills. Are they essential to job performance or merely desirable, and can they be objectively measured?

Another systematic criterion of recruitment and selection practices that organisations can adopt is the competency model. The competencies model in contrast, seeks to identify abilities needed to perform a job well rather than focusing on personal characteristics such as politeness or assertiveness. Torrington et al (2008) identify some potentially important advantages of referring to competencies in this area noting that: „they can be used in an integrated way for selection, development, appraisal and reward activities; and also that from them behavioural indicators can be derived against which assessment can take place.â€&#x;

Competency-based models are becoming increasingly popular in graduate recruitment where organisations are making decisions on future potential. Farnham and Stevens (2000) found that managers in the public sector increasingly viewed traditional job descriptions and person specifications as archaic, rigid and rarely an accurate reflection of the requirements of the job.

There is increasing evidence that this popularity is more widespread. A CIPD report (2007) 3

found that 86 per cent of organisations surveyed were now using competency-based interviews in some way; and in another survey, over half of employers polled had started using them in the past year (William, 2008). It is suggested that the competency-based model may be a more meaningful way of underpinning recruitment and selection in the current fastmoving world of work and can accordingly contribute more effectively to securing high performance.

Various studies have been done related to recruitment and selection practices and how it affects performance of employees in organizations. This includes Zheng (2006) and Croucher (2008) who pointed out, there is a positive and significant relationship between recruitment and selection and the performance of a firm. Sang (2005) also discovered a positive association between recruitment and selection and business performance. Ichniowski and Shaw (1999), Katou and Bedhwar (2006), and Wright et al. (2005) also reported similar positive results between recruitment and selection and performance in Canada, in Finland and in New Zeeland.

The conceptual paper reviews previous empirical work on four major categories of recruitment and selection practices. These independent variables include: Recruitment and Selection sources, Recruitment and Selection policies and procedures, Use of technology in Recruitment and Selection, and Employer branding.

Recruitment theories have focused primarily on process variables; that is, on the psychological or environmental mechanisms believed to determine the outcomes of various recruitment practices. However, in order to discuss these processes, it is first necessary to delineate the major practices (independent variables) and outcomes (dependent variables) that comprise the recruitment domain (Rynes, 1989)

Some of the recruitment and selection

theories and models that this paper focuses on includes; realistic information hypothesis and the individual difference hypothesis on recruitment and selection sources; resourcing cycle model 4

First, research on Recruitment and Selection sources, has focused on employer preferences for various sources, and on difference in the post-hire outcome which is performance of employees. Recruitment and Selection policies and procedures has examined the roles of realistic previews, recruitment follow ups, recruiting expenditures and application processes on job acceptance rates and post-hire outcome which is employee performance. Use of technology in Recruitment and Selection focuses on Impact of Online Recruitment and selection practices on Recruitment and selection Performance and also on the post-hire outcome which is employee performance. Finally, review on Employer branding focuses on organisationâ€&#x;s image has a direct effect on attraction to the organization, and influence on applicant assessments of fit with firms and also post-hire outcome which is employee performance. Basically, explanations of how recruitment practices influence post-hire outcomes fall into one of two categories: self-selection or adjustment (Rynes, 1989).

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LITERATURE REVIEW 2.1 Introduction Literature review is an account of what has been published on a topic by accredited scholars and researchers (Kombo and Tromp, 2006). A review of theoretical literature and gaps to be filled by the study is provided in this paper in an attempt to shed light on the on the accomplishments and challenges encountered in the field of study.

Mugenda and Mugenda (1999) describe an independent variable as one that a researcher manipulates in order to determine its effect or influence on another variable. This conceptual paper examines four factors as independent variables that influence performance of employees.

Recruitment and Selection sources

Recruitment and Selection policies and procedures Employee Performance Use of technology in Recruitment and Selection Employer branding Independent variables

Dependent Variables

Figure 2.1: Independent and Dependent variables

2.1.1 Recruitment and Selection sources One aspect of recruitment believed to be particularly important is the source used to attract new employees (Taylor and Schmidt, 1983) as recruitment sources have an impact on the 6

result of recruitment in terms of both vacation duration and productivity (Rousseau, 1995).

Terpstra (1996) argues that recruitment sources are significantly linked to differences in employee performance, turnover, satisfaction and organizational commitment.

Generally, organizations can recruit internally from those already employed by the organisation, or source from the external labour market. A policy of internal recruiting is one component of high-performance work systems and companies that practice internal recruiting are more likely to be successful financially than companies that rely on external recruiting for top talent. This is because internal recruiting is cost effective compared to external recruitment and is considered to enhance organizational commitment and job satisfaction, which lead to lower employee turnover rates and higher productivity (Bernardin, 2003).

With regard to recruitment sources, two theoretical explanations (i.e., the realistic information hypothesis and the individual difference hypothesis) for why sources may be differentially associated with recruitment outcomes have attracted the most attention (Barber, 1998).

The realistic information hypothesis proposes that persons recruited via certain sources are likely to have more accurate information about what a job entails (Rynes, 1991). Possessing such information is thought to enable an applicant to make a more informed decision about whether to pursue a job.

Given the organizing framework we presented, it should be apparent that we believe that more theory development needs to take place with regard to recruitment sources and their relationship with process variables (Breaugh and Billings, 1988).

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The second explanation commonly offered for recruitment source differences is known as the individual difference hypothesis (Rynes, 1991). This explanation is based on the premise that sources differ in the types of individuals they reach, and that these differences result in different outcomes.

Six studies have examined differences in employee performance by source. Three (Hill, 1970; Taylor & Schmidt, 1983; Swaroff, et al., 1985) found no significant differences (although in all three of Hill's samples, the direction of performance ratings favored referrals). Breaugh (1981) found that scientists recruited through college placement were rated lower on work quality and dependability than direct applicants and respondents to professional journal advertisements. Those recruited through newspapers were also rated lower than the other two sources, but only on dependability. Caldwell and Spivey (1983) found that formal advertising was generally more likely to yield successful store clerks, although racial groups varied in terms of specific results. Finally, Breaugh & Mann (1984) reported that social service workers who applied directly had higher performance ratings than other groups. In summary, there has been little consistency in previous findings concerning source-performance relationships.

Therefore, best practices identified in recruitment are: conducting formal recruitment source analysis to choose the most appropriate sources; following a policy of internal recruiting; and encouraging employee referrals and other informal recruiting sources to enhance the quality of applicants attracted.

2.1.2 Recruitment and Selection policies and procedures Recruitment and selection policy and procedures of any organization is derived from the personnel policy of the same organization. In other words, the former is a part of the latter.

However, recruitment policy by itself should take into consideration the governmentâ€&#x;s reservation policy. Personnel policies of other organizations regarding merit, internal sources, 8

social responsibility in absorbing minority sections, women etc. Recruitment and selection policy and procedure should commit itself to the organizationâ€&#x;s personnel policy like enriching the organizationâ€&#x;s human and handicapped people of the society. The policy must incorporate motivating the employees through internal promotions, improving the employee loyalty to the organization by absorbing the retrenched or laid off employees or casual/temporary employees or dependents of present/former employees etc. subject to their capabilities. Therefore an organisation recruitment and selection policies will determine the kind of employee an organisation recruits in terms of their performance and also performance of the existing employees working in the organisation (Armstrong, 2009).

Previous theory and research have not devoted much attention to defining the domain of recruitment policies and practices. However, where such variables have been considered, one or more of the following have generally been included: timing of recruitment follow ups, policies regarding recruitment expenditures (e.g., reimbursement policies), nature of the application process, and realism of recruitment messages e.g., Rynes & Boudreau, 1986; Schwab, 1982; Taylor & Bergmann, 1987(Rynes, 1989).

Administrative practices have been hypothesized to affect job applicants in one of two ways: by signaling something about the company (e.g., organizational efficiency, ability to pay), or by influencing applicants' expectancies of receiving job offers (Rynes, et al., 1980).

Other than realistic job previews, the most frequently researched administrative practice has been the promptness of follow up contacts between various stages of the recruitment process.

Two early studies (Arvey, Gordon, Massengill & Mussio, 1975; Ivancevich & Donnelly, 1971) suggested that dropouts from the applicant pool might be minimized by timely follow up contacts. However, Taylor and Bergmann (1987) observed no relationship between length of follow up and perceived company attractiveness. Thus, previous studies appear to have produced conflicting results.

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Specifically, the two studies that reported a timing effect (Arvey et al., 1975; Ivancevich and Donelly, 1971) assessed whether or not individuals were still part of the applicant pool, whereas the one that did not (Taylor and Bergman, 1987) assessed perceived job attractiveness among those who remained in their sample at the post-campus interview stage.

Two studies have also examined whether recruiting expenditures on meals, hotels and the like have any impact on recruitment outcomes. Taylor and Bergmann (1987) examined this question from the perspective of job applicants; Rynes and Boudreau (1986) from that of corporate recruiting directors. Neither study found any evidence of expenditure-outcome relationships.

Finally, a single study (Gersen, 1976) examined the effects of implementing a more rigorous application process for (teacher) applicants. There, implementation of process requiring college transcripts, evidence of teaching certification, and five personal references (in addition to the customary application blank) produced only half as many applicants as in previous years. However, contrary to expectations, no differences were observed in applicant quality.

No recruitment issue has generated more attention, empirical or theoretical, than realistic job previews. Indeed, because realistic preview research has already been reviewed a number of times. This paper will focuses on the relationship between realistic job preview information and performance (Rynes, 1989).

However, researchers have also examined the relationship between realistic information and performance (premack & Wanous, 1985). Despite this growing body of empirical research, theories as to how realistic recruitment might affect job performance are not well developed.

Wanous (1978) hypothesized that realistic previews might help new recruits focus their work efforts by removing role ambiguity. Two years later, he cited validation evidence suggesting 10

that performance is affected by the degree of matching between applicant qualifications and job requirements, but did not link this point explicitly to realistic previews (Wanous, 1980).

Moreover, in both discussions, Wanous (1978 & 1980) predicted that the RJP-performance relationship was likely to be weak, because performance depends on many factors "other than just how well abilities are matched to job requirements". In summary, theories linking realism to performance are quite general. Moreover, they do not predict strong relationships. Perhaps as a result, empirical research investigating realistic job preview -performance linkages has been largely a theoretical (Rynes, 1989).

Despite this growing body of empirical research, theories as to how realistic recruitment might affect job performance are not well developed. Wanous (1978) hypothesized that realistic previews might help new recruits focus their work efforts by removing role ambiguity. Two years later, he cited validation evidence suggesting that performance is affected by the degree of matching between applicant qualifications and job requirements, but did not link this point explicitly to realistic job previews. Moreover, in both discussions, Wanous predicted that the realistic job preview-performance relationship was likely to be weak, because performance depends on many factors "other than just how well abilities are matched to job requirements".

2.1.3 Use of technology in Recruitment and Selection In the past decade, information technology has made rapid inroads into organizations, and has had an impact on personnel recruitment and selection as well (Bartram, 2000; Harris, 2000).

The rapid growth of the internet and its increasing accessibility has resulted in organizations recruiting and selecting applicants for jobs online (Bartram, 2000).

Use of technology in Recruitment Cappelli (2001) and Buckley et al. (2004) claim that, in an environment with fierce competition for talent, companies that master the art and science of on-line recruiting i.e. the 11

ability to attract and quickly make job offers to qualified applicants will provide them with a competitive advantage.

Several internet-based recruitment applications have been developed which provide applicants with the opportunity to apply online for a specific job. This can be either unstructured or structured. Unstructured systems ask applicants to send their resumes through email. Here, organizations typically receive large numbers of resumes (in different formats), causing inevitable pre-screening problems. More structured approaches require applicants to complete online standardized biographical information blank, enabling organizations to exert more control over the information gathering and storage process (Lievens et al., 2002).

The payoffs of internet recruiting can be enormous in terms of cost and time savings.

Estimates show that the web can reduce costs by up to 95% over those of traditional recruitment sources and can narrow hiring cycle time by approximately 25% (Cober et al., 2000 cf. Dineen et al., 2002). Other advantages of internet recruitment according to employers are that it gives access to a much wider pool of candidates; it is easy-to-update and provides global coverage 24/7. Additionally, it is regarded as a much more important source of applications in the future as well as a very effective marketing tool in attracting applicants.

However, employers are not yet convinced that the internet has really improved their recruitment processes and whether it will replace traditional methods (IRS, 2001).

Use of technology in Selection By applying technology in the screening process, applicants can apply and be screened seamlessly through the companyâ€&#x;s website, so that recruiters and hiring managers can spend more time with a larger group of qualified applicants (Bauer et. al, 2004). It also provides a paperless, standardized and objective screening process, which can be implemented on demand at numerous and highly decentralized locations. Job related screening questions and inquiries into applicantsâ€&#x; work and educational experiences facilitate screening out of job 12

applicants who do not meet the minimal criteria for employment, as well as those who demonstrate a proneness to counterproductive behavior. Overall, the firm can gather all necessary applicant information at the first point of contact with them (Buckley et al., 2004).

Further, there is a growing use of computers in personnel selection in place of paper-and pencil for the administration, scoring and interpretation of ability and personality tests (Bartram, 2000 cf. Robertson et al., 1996). Usually, internet-based testing can be either supervised or unsupervised. In the former type, applicants are required to log on to a website from a standardized and controlled setting (e.g. a company‟s test centre) and a test administrator supervise the applicants. Other organizations engage in unsupervised testing where applicants can log on to a test site wherever and whenever they want and there is no test administrator to supervise applicants, however, there is no guarantee that the applicant completes the test without external help. However, there are all sorts of issues associated with internet-based assessment, including security, identity, confidentiality, technical issues of equivalence, equality of access, and fairness. Bartram (2000) adds that one of the greatest limitations of the internet is evident in performance weaknesses of the technology itself.

Hence, screening and testing must be valid in the context of particular positions and their requirements, and companies that adopt on-line screening need to ensure that the criteria truly predict job performance (Cappelli, 2001).

2.1.4 Employer branding Evidence suggests that an organization‟s reputation has a direct effect on attraction to the organization, and is an important influence on applicant assessments of fit with firms (Rynes et al., 1991; Turban et al., 1998). Along these lines, Schneider‟s (1987) “attraction-selectionattrition” model emphasizes that people are attracted to different types of organizations, depending on their interests, needs, norms and personality. Therefore, it is no surprise that labour market shortages and the “war for talent” across several countries has resulted in a greater emphasis and concern for organizational image and on applying marketing principles to attract top potential applicants to choose an organization‟s offer of employment above that 13

of a competitor (Lievens et al., 2002). Glossy positive images may attract applicants, but may cause greater disillusionment and higher turnover later. Hence more „realistic job previews‟ conveying less uniformly favorable messages, may be provided to applicants in order to recruit more committed employees (Iles, 2001).

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